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{{Short description|Agency of the United States Department of Defense}} {{Infobox government agency | agency_name = Defense Finance and Accounting Service | logo = Defense Finance and Accounting Service (DFAS) Logo.svg | logo_width = 133 | logo_caption = Official logo | seal = Defense_Finance_Accounting_Services_%28DFAS%29_Official_Seal.gif | seal_width = 150 | seal_caption = Official seal | formed = 1991 | preceding1 = | jurisdiction = | headquarters = [[Indianapolis, Indiana]] | employees = >12,000 | chief1_name = Audrey Davis | chief1_position = Director | chief2_name = Jonathan Witter | chief2_position = Principal Deputy Director | chief3_name = ~ Aaron Gillison | chief3_position = Deputy Director, Operations | chief4_name = | chief4_position = Deputy Director, Strategy and Support<ref>[https://www.dfas.mil/pressroom/dfasleadership.html DFAS Leadership]</ref> | parent_department = [[United States Department of Defense|Department of Defense]] | child1_agency = | website = [http://www.dfas.mil www.dfas.mil] }} The '''Defense Finance and Accounting Service''' ('''DFAS''') is an agency of the [[United States Department of Defense]] (DOD), headquartered in [[Indianapolis, Indiana]]. The DFAS was established in 1991 under the authority, direction, and control of the [[Under Secretary of Defense (Comptroller)|Under Secretary of Defense (Comptroller)/Chief Financial Officer]] to strengthen and reduce costs of financial management and operations within the DOD. The DFAS is responsible for all payments to servicemembers, employees, vendors, and contractors. It provides business intelligence and finance and accounting information to DOD decisionmakers. The DFAS is also responsible for preparing annual financial statements and the consolidation, standardization, and modernization of finance and accounting requirements, functions, processes, operations, and systems for the DOD.<ref>Office of the Federal Register. (n.d.). [http://www.usgovernmentmanual.gov/Agency.aspx?EntityId=Mf77tRzNNso=&ParentEId=M3vb5MwoEgA=&EType=F2blCKa+e1g=&S=+GEykAAD/WYUIMLIJ2mZaQ==&AspxAutoDetectCookieSupport=1 Defense Finance and Accounting Service. In the United States Government Manual]. Accessed on April 11, 2017.</ref> One of the most visible responsibilities of the DFAS is handling military pay. The DFAS pays all DoD military and civilian personnel, retirees and annuitants, as well as major DoD contractors and vendors. The DFAS also supports customers outside the DoD in support of electronic government initiatives. Customers include the [[Executive Office of the President]], [[United States Department of Energy|Department of Energy]], [[Department of Veterans Affairs]], [[Department of Health & Human Services]], [[Department of State]], [[U.S. Agency for Global Media]] and Foreign partners.<ref>{{cite web |title=Defense Finance and Accounting Service |url=https://www.dfas.mil/pressroom/aboutdfas.html |website=www.dfas.mil |publisher=Defense Finance and Accounting Service |access-date=6 April 2019}}</ref> The DFAS is a [[working capital]] fund agency financed by reimbursement of operating costs from its governmental customers (mostly the military service departments) rather than through direct appropriations. The DFAS remains the world's largest finance and accounting operation.<ref name=":0">Defense Finance and Accounting Service. (2016, December 21). [https://www.dfas.mil/pressroom/aboutdfas.html Agency Overview]. Accessed on April 11, 2017.</ref> In [[Fiscal year|FY]] 2019, the DFAS:<ref>{{cite web |title=FY18 Agency Financial Report |url=https://www.dfas.mil/pressroom/aboutdfas.html |website=www.dfas.mil |publisher=Defense Finance and Accounting Service |access-date=6 April 2019}}</ref> * Processed 140.8 million pay transactions (~6.5 million people/accounts) * Made 6.2 million travel payments * Paid 15.1 million commercial invoices * Maintained 98 million General Ledger accounts * Managed $1.17 trillion in Military Retirement and Health Benefits Funds * Made $558 billion in disbursements * Managed $616.6 billion in Foreign Military Sales (reimbursed by foreign governments) * Accounted for 1,349 active [[United States Department of Defense|DoD]] appropriations ==History== Prior to 1990, each of the three military departments (Department of the Army, Department of the Navy, and Department of the Air Force) and the other major governmental agencies developed and implemented their own accounting, budgeting, and financial management systems. This freedom of operation lead to numerous specialized systems that were incapable of communicating with one another. In 1990, there were 878 independent finance and accounting systems maintained within Federal Government Agencies.<ref name=":1">Southerland, G. W. (1997). [http://calhoun.nps.edu/bitstream/handle/10945/8400/feasibilitystudy00sout.pdf?sequence=1 ''A Feasibility Study into the Use of a Single Local Financial Management System for the Department of the Navy'' (Unpublished thesis)]. Naval Postgraduate School, Monterey, California.</ref> In 1991, [[United States Secretary of Defense|Secretary of Defense]] [[Dick Cheney]] created the Defense Finance and Accounting Service to reduce the cost of Defense Department finance and accounting operations and to strengthen financial management through consolidation of finance and accounting activities across the department. Since its inception, the DFAS has consolidated more than 300 installation-level finance and accounting offices into 10 sites, and reduced the work force from about 27,000 to about 13,000 personnel.<ref name=":0" /> In 2003, the DFAS was selected by the [[Office of Personnel Management]] to be one of four governmental entities to provide payroll services for the U.S. government. In 2004, [[Nielsen Norman Group]] named the Defense Finance and Accounting Service's portal ({{Proper name|ePortal}}) among the 10 best government [[intranet]]s in the world. Experts at the Nielsen reviewed hundreds of intranets before naming the top ten which shared traits like good usability and organization, performance [[Software metric|metrics]] and incremental improvements.<ref>[http://dssresources.com/news/39.php DFAS Portal Named Among the World's 10 Best Government Intranets – DSSResources.com]</ref> The 2005 round of [[Base Realignment and Closure]] cuts required the DFAS to be completely restructured. Many sites were integrated into major centers. Since its inception, the agency has consolidated more than 300 installation-level offices into nine DFAS sites and reduced the number of systems in use from 330 to 111. As a result of BRAC efforts begun in FY 2006, the DFAS has closed 20 sites, realigned headquarters from Arlington to Indianapolis and established a liaison location in Alexandria, Virginia.<ref name=":0" /> === Establishing legislation === [[Chief Financial Officers Act|The Chief Financial Officers Act of 1990]] ([http://uscode.house.gov/ 31 USC 501], [http://uscode.house.gov/statviewer.htm?volume=104&page=2838 Pub. L. 101–576, title I, §101, Nov. 15, 1990], [http://uscode.house.gov/statviewer.htm?volume=104&page=2838 104 Stat. 2838]) and [http://uscode.house.gov/ 10 USC 113] laid the groundwork for the [[United States Secretary of Defense|Secretary of Defense]] to establish a more streamlined federal financial management structure.<ref name=":1" /> In late 1990, under the guidelines of the [https://biotech.law.lsu.edu/blaw/dodd/corres/pdf/d51185wch1_112690/d51185p.pdf Department of Defense Directive (DoDD) 5118.5], the establishment of DFAS was announced in the [[Federal Register]] ([https://www.gpo.gov/fdsys/pkg/FR-1990-12-05/pdf/FR-1990-12-05.pdf 55 FR 50179 (1990)]). These guidelines were later codified in the [[Code of Federal Regulations]] in ([https://www.gpo.gov/fdsys/pkg/CFR-2016-title32-vol2/pdf/CFR-2016-title32-vol2-part352a.pdf 32 CFR Part 352a]). === Related agencies === The [[United States Department of Defense]] is the parent agency of DFAS. [https://www.usa.gov/federal-agencies/Defense-Finance-and-Accounting-Service-Garnishment-Operations-Center Defense Finance and Accounting Service Garnishment Operations Center] and the [https://www.usa.gov/federal-agencies/Defense-Finance-and-Accounting-Service-Out-of-Service-Debt-Mgmt-Center Defense Finance and Accounting Service Out-of-Service Debt Management Center] are subordinate agencies of DFAS.<ref>USA.gov. (n.d.). [https://www.usa.gov/federal-agencies/defense-finance-and-accounting-service Defense Finance and Accounting Service]. Accessed on April 11, 2017.</ref> === Major events in the history of the agency === * '''1991''': DFAS founded * '''1992''': Began consolidation of 300 field sites into 26 DFAS centers * '''1994''': Began paying all DoD civilian employees; established centralized disbursing * '''1995''': DoD establishes DFAS as a [[Fourth Estate (Department of Defense)|Fourth Estate]] Human Resources Regional Service Center * '''1998''': Consolidated military pay operations into one system * '''2000''': First unmodified financial statement audit opinion * '''2002''': Received first unmodified audit opinion for Defense Commissary Agency and Defense Contract Audit Agency * '''2005''': Base Realignment and Closure realigns DFAS into 10 sites * '''2006''': Initiated Wounded-in-Action program providing real-time financial support to wounded service members * '''2007''': Wounded Warrior Family Support Debit Card Program implemented providing funds to families of wounded warfighters * '''2010''': Created Audit Readiness Directorate * '''2013''': Achieved unmodified opinions on Statement on Standards for Attestation Engagement No. 16 for Civilian Pay, Military Pay, and Disbursing * '''2016''': Achieved the 17th unmodified audit opinion for DFAS WCF Financial Statements<ref>Defense Finance and Accounting Service. (2016). [https://www.dfas.mil/pressroom/aboutdfas.html 2016 DFAS Annual Financial Report]. Accessed on April 11, 2017.</ref> ==Major laws associated with and/or enforced by agency== The DFAS must "establish and enforce requirements, principles, standards, systems, procedures, and practices necessary to comply with finance and accounting statutory and regulatory requirements applicable to the Department of Defense." The DFAS responsibilities and authorities are outlined in DoD 7000.14-R, "DoD Financial Management Regulation (DoD FMR)."<ref name=":2">Under Secretary of Defense (Comptroller). (current edition). [http://comptroller.defense.gov/FMR.aspx DoD 7000.14-R, “DoD Financial Management Regulation.”] </ref> == Controversies == === Unsubstantiated Change Actions === A 2013 Reuters investigation concluded that DFAS implements monthly "unsubstantiated change actions"—illegal, inaccurate "plugs"—that forcibly make DOD's books match Treasury's books.<ref>{{Cite news|last=Paltrow|first=Scot J.|date=2013-11-18|title=Special Report: The Pentagon's doctored ledgers conceal epic waste|language=en|publisher=Reuters|url=https://www.reuters.com/article/us-usa-pentagon-waste-specialreport-idUSBRE9AH0LQ20131118|access-date=2021-02-16}}</ref> Reuters concluded: <blockquote>Fudging the accounts with false entries is standard operating procedure... Reuters has found that the Pentagon is largely incapable of keeping track of its vast stores of weapons, ammunition and other supplies; thus it continues to spend money on new supplies it doesn't need and on storing others long out of date. It has amassed a backlog of more than half a trillion dollars... [H]ow much of that money paid for actual goods and services delivered isn't known.<ref>{{Cite news|last=Paltrow|first=Scot J.|date=2013-11-18|title=Special Report: The Pentagon's doctored ledgers conceal epic waste|language=en|publisher=Reuters |url=https://www.reuters.com/article/us-usa-pentagon-waste-specialreport-idUSBRE9AH0LQ20131118 |access-date=2021-02-16}}</ref></blockquote> === Audit === In 1990, the U.S. Congress passed the Chief Financial Officers Act, which directed all federal departments and agencies to submit to annual audits.<ref>{{Cite web|title=Chief Financial Officers Act of 1990|url=https://govinfo.library.unt.edu/npr/library/misc/cfo.html|access-date=2021-02-16|publisher=govinfo.library.unt.edu}}</ref> The DFAS is the lead Department of Defense unit in charge of auditing the U.S. military. Before the audit kicked off, the Pentagon spent tens of billions of dollars to upgrade its technology in preparation for the audit. Many of the new systems failed, however, as they were "either unable to perform all the jobs they were meant to do or scrapped altogether—only adding to the waste they were meant to stop," according to Reuters.<ref>{{Cite news|last=Paltrow|first=Scot J.|date=2013-11-18|title=Special Report: The Pentagon's doctored ledgers conceal epic waste|language=en|publisher=Reuters|url=https://www.reuters.com/article/us-usa-pentagon-waste-specialreport-idUSBRE9AH0LQ20131118|access-date=2021-02-16}}</ref> According to contract announcements, substantial audit activity took place during fiscal years 2016–2018, with the DOD's first comprehensive audit concluding at the end of fiscal year 2018. Corporate accounting firms conducted the audit on behalf of the DFAS, with [[Ernst & Young]],<ref>{{Cite web|title=Contracts for January 27, 2016|url=https://www.defense.gov/Newsroom/Contracts/Contract/Article/645117//|access-date=2021-02-16|publisher=U.S. DEPARTMENT OF DEFENSE|language=en-US}}</ref><ref>{{Cite web|title=Contracts for May 13, 2016|url=https://www.defense.gov/Newsroom/Contracts/Contract/Article/759340//|access-date=2021-02-16|publisher=U.S. DEPARTMENT OF DEFENSE|language=en-US}}</ref><ref>{{Cite web|title=Contracts for December 23, 2016|url=https://www.defense.gov/Newsroom/Contracts/Contract/Article/1037823//|access-date=2021-02-16|publisher=U.S. DEPARTMENT OF DEFENSE|language=en-US}}</ref><ref>{{Cite web|title=Contracts for July 11, 2017|url=https://www.defense.gov/Newsroom/Contracts/Contract/Article/1243908//|access-date=2021-02-16|publisher=U.S. DEPARTMENT OF DEFENSE|language=en-US}}</ref><ref>{{Cite web|title=Contracts for August 22, 2017|url=https://www.defense.gov/Newsroom/Contracts/Contract/Article/1286226//|access-date=2021-02-16|publisher=U.S. DEPARTMENT OF DEFENSE|language=en-US}}</ref><ref>{{Cite web|title=Contracts for September 7, 2017|url=https://www.defense.gov/Newsroom/Contracts/Contract/Article/1302200//|access-date=2021-02-16|publisher=U.S. DEPARTMENT OF DEFENSE|language=en-US}}</ref><ref>{{Cite web|title=Contracts for October 25, 2017|url=https://www.defense.gov/Newsroom/Contracts/Contract/Article/1353888//|access-date=2021-02-16|publisher=U.S. DEPARTMENT OF DEFENSE|language=en-US}}</ref><ref>{{Cite web|title=Contracts for December 27, 2017|url=https://www.defense.gov/Newsroom/Contracts/Contract/Article/1404819//|access-date=2021-02-16|publisher=U.S. DEPARTMENT OF DEFENSE|language=en-US}}</ref><ref>{{Cite web|title=Contracts for December 28, 2017|url=https://www.defense.gov/Newsroom/Contracts/Contract/Article/1405313//|access-date=2021-02-16|publisher=U.S. DEPARTMENT OF DEFENSE|language=en-US}}</ref><ref>{{Cite web|title=Contracts for September 21, 2018|url=https://www.defense.gov/Newsroom/Contracts/Contract/Article/1642195//|access-date=2021-02-16|publisher=U.S. DEPARTMENT OF DEFENSE|language=en-US}}</ref> Kearney & Co.,<ref>{{Cite web|title=Contracts for September 23, 2016|url=https://www.defense.gov/Newsroom/Contracts/Contract/Article/954619//|access-date=2021-02-16|publisher=U.S. DEPARTMENT OF DEFENSE|language=en-US}}</ref><ref>{{Cite web|title=Contracts for July 6, 2017|url=https://www.defense.gov/Newsroom/Contracts/Contract/Article/1239537//|access-date=2021-02-16|publisher=U.S. DEPARTMENT OF DEFENSE|language=en-US}}</ref><ref>{{Cite web|title=Contracts for December 19, 2017|url=https://www.defense.gov/Newsroom/Contracts/Contract/Article/1400564//|access-date=2021-02-16|publisher=U.S. DEPARTMENT OF DEFENSE|language=en-US}}</ref> [[KPMG]],<ref>{{Cite web|title=Contracts for January 27, 2016|url=https://www.defense.gov/Newsroom/Contracts/Contract/Article/645117//|access-date=2021-02-16|publisher=U.S. DEPARTMENT OF DEFENSE|language=en-US}}</ref><ref>{{Cite web|title=Contracts for December 15, 2016|url=https://www.defense.gov/Newsroom/Contracts/Contract/Article/1031644//|access-date=2021-02-16|publisher=U.S. DEPARTMENT OF DEFENSE|language=en-US}}</ref><ref>{{Cite web|title=Contracts for August 22, 2017|url=https://www.defense.gov/Newsroom/Contracts/Contract/Article/1286226//|access-date=2021-02-16|publisher=U.S. DEPARTMENT OF DEFENSE|language=en-US}}</ref><ref>{{Cite web|title=Contracts for December 21, 2017|url=https://www.defense.gov/Newsroom/Contracts/Contract/Article/1402841//|access-date=2021-02-16|publisher=U.S. DEPARTMENT OF DEFENSE|language=en-US}}</ref><ref>{{Cite web|title=Contracts for December 29, 2017|url=https://www.defense.gov/Newsroom/Contracts/Contract/Article/1406053//|access-date=2021-02-16|publisher=U.S. DEPARTMENT OF DEFENSE|language=en-US}}</ref><ref>{{Cite web|title=Contracts for February 9, 2018|url=https://www.defense.gov/Newsroom/Contracts/Contract/Article/1437756//|access-date=2021-02-16|publisher=U.S. DEPARTMENT OF DEFENSE|language=en-US}}</ref> and [[PricewaterhouseCoopers|PwC]]<ref>{{Cite web|title=Contracts for May 12, 2016|url=https://www.defense.gov/Newsroom/Contracts/Contract/Article/758273//|access-date=2021-02-16|publisher=U.S. DEPARTMENT OF DEFENSE|language=en-US}}</ref><ref>{{Cite web|title=Contracts for May 26, 2017|url=https://www.defense.gov/Newsroom/Contracts/Contract/Article/1195854//|access-date=2021-02-16|publisher=U.S. DEPARTMENT OF DEFENSE|language=en-US}}</ref><ref>{{Cite web|title=Contracts for March 29, 2018|url=https://www.defense.gov/Newsroom/Contracts/Contract/Article/1479983//|access-date=2021-02-16|publisher=U.S. DEPARTMENT OF DEFENSE|language=en-US}}</ref><ref>{{Cite web|title=Contracts for May 16, 2018|url=https://www.defense.gov/Newsroom/Contracts/Contract/Article/1523741//|access-date=2021-02-16|publisher=U.S. DEPARTMENT OF DEFENSE|language=en-US}}</ref> prominent among them. Other firms, such as Cotton & Co.,<ref>{{Cite web|title=Contracts for February 29, 2016|url=https://www.defense.gov/Newsroom/Contracts/Contract/Article/682238//|access-date=2021-02-16|publisher=U.S. DEPARTMENT OF DEFENSE|language=en-US}}</ref><ref>{{Cite web|title=Contracts for February 6, 2017|url=https://www.defense.gov/Newsroom/Contracts/Contract/Article/1072455//|access-date=2021-02-16|publisher=U.S. DEPARTMENT OF DEFENSE|language=en-US}}</ref><ref>{{Cite web|title=Contracts for May 30, 2017|url=https://www.defense.gov/Newsroom/Contracts/Contract/Article/1197079//|access-date=2021-02-16|publisher=U.S. DEPARTMENT OF DEFENSE|language=en-US}}</ref> [[Deloitte]],<ref>{{Cite web|title=Contracts for December 21, 2017|url=https://www.defense.gov/Newsroom/Contracts/Contract/Article/1402841//|access-date=2021-02-16|publisher=U.S. DEPARTMENT OF DEFENSE|language=en-US}}</ref><ref>{{Cite web|title=Contracts for April 17, 2018|url=https://www.defense.gov/Newsroom/Contracts/Contract/Article/1495974//|access-date=2021-02-16|publisher=U.S. DEPARTMENT OF DEFENSE|language=en-US}}</ref><ref>{{Cite web|title=Contracts for September 27, 2018|url=https://www.defense.gov/Newsroom/Contracts/Contract/Article/1647166//|access-date=2021-02-16|publisher=U.S. DEPARTMENT OF DEFENSE|language=en-US}}</ref> and Grant Thornton,<ref>{{Cite web|title=Contracts for May 30, 2017|url=https://www.defense.gov/Newsroom/Contracts/Contract/Article/1197079//|access-date=2021-02-16|publisher=U.S. DEPARTMENT OF DEFENSE|language=en-US}}</ref> provided audit readiness and financial improvement. According to the Pentagon, the DOD's first audit covered $2.7 trillion in assets and $2.6 trillion in liabilities.<ref>{{Cite web|title=The Biggest Audit in Human History ... Really?|url=https://www.defense.gov/Explore/News/Article/Article/1692189/the-biggest-audit-in-human-history-really/|access-date=2021-02-16|publisher=U.S. DEPARTMENT OF DEFENSE|language=en-US}}</ref><ref>{{Cite web|title=DOD Audit: Separating Myth From Fact|url=https://www.defense.gov/Explore/News/Article/Article/1848744/dod-audit-separating-myth-from-fact/|access-date=2021-02-16|publisher=U.S. DEPARTMENT OF DEFENSE|language=en-US}}</ref> The DOD did not pass this first audit.<ref>{{Cite web|last=Cancian|first=Mark|title=Why Auditing The Pentagon Isn't Turning Up a Windfall of Waste|url=https://www.forbes.com/sites/markcancian/2018/11/19/the-dod-audit-no-pot-of-gold-at-the-end-of-that-rainbow/|access-date=2021-02-16|website=Forbes|language=en}}</ref> Five of the twenty-one units received a passing grade (an 'unmodified opinion'), but the rest of the units failed. [[David Norquist]], the Pentagon’s [[comptroller]], estimated that this first audit cost close to $1 billion: $367 million for military infrastructure to support the audits and for the corporations conducting the audit, and $551 million to fix the problems identified in the audit.<ref>{{Cite web |last=Mehta |first=Aaron |date=2018-01-10 |title=Pentagon is prepared to spend over $900 million in first audit |url=https://www.defensenews.com/pentagon/2018/01/10/pentagon-is-prepared-to-spend-over-900-million-in-first-audit/ |url-status=live |archive-url=https://archive.today/20240509150855/https://www.defensenews.com/pentagon/2018/01/10/pentagon-is-prepared-to-spend-over-900-million-in-first-audit/ |archive-date=2024-05-09 |access-date=2021-02-16 |work=[[Defense News]] |language=en-US}}</ref> Investigative journalist [[Dave Lindorff]] described the situation: the accounting firms eventually concluded that the department's "financial records were riddled with so many bookkeeping deficiencies, irregularities, and errors that a reliable audit was simply impossible."<ref>{{Cite news|last=Lindorff|first=Dave|date=2018-11-27|title=Exclusive: The Pentagon's Massive Accounting Fraud Exposed|journal=The Nation|language=en-US|url=https://www.thenation.com/article/archive/pentagon-audit-budget-fraud/|access-date=2021-02-16|issn=0027-8378}}</ref> Deputy Secretary of Defense [[Patrick M. Shanahan|Patrick Shanahan]] asserted, "We failed the audit, but we never expected to pass it."<ref>{{Cite web|last=Bowden|first=John|date=2018-11-15|title=Pentagon fails first-ever audit|url=https://thehill.com/policy/defense/416963-pentagon-fails-first-ever-audit|access-date=2021-02-16|website=TheHill|language=en}}</ref> After the first audit was over, the DOD continued purchasing audit services from accounting firms, including from Ernst & Young,<ref>{{Cite web |title=Contracts for December 19, 2018 |url=https://www.defense.gov/Newsroom/Contracts/Contract/Article/1718270// |access-date=2021-02-16 |publisher=U.S. DEPARTMENT OF DEFENSE |language=en-US}}</ref><ref>{{Cite web |title=Contracts for December 20, 2018 |url=https://www.defense.gov/Newsroom/Contracts/Contract/Article/1719367// |access-date=2021-02-16 |publisher=U.S. DEPARTMENT OF DEFENSE |language=en-US}}</ref><ref>{{Cite web |title=Contracts for December 21, 2018 |url=https://www.defense.gov/Newsroom/Contracts/Contract/Article/1720584// |access-date=2021-02-16 |publisher=U.S. DEPARTMENT OF DEFENSE |language=en-US}}</ref> Kearney & Co.,<ref>{{Cite web |title=Contracts for December 13, 2018 |url=https://www.defense.gov/Newsroom/Contracts/Contract/Article/1713264// |access-date=2021-02-16 |publisher=U.S. DEPARTMENT OF DEFENSE |language=en-US}}</ref> and KPMG.<ref>{{Cite web |title=Contracts for November 30, 2018 |url=https://www.defense.gov/Newsroom/Contracts/Contract/Article/1702589// |access-date=2021-02-16 |publisher=U.S. DEPARTMENT OF DEFENSE |language=en-US}}</ref><ref>{{Cite web |title=Contracts for December 21, 2018 |url=https://www.defense.gov/Newsroom/Contracts/Contract/Article/1720584// |access-date=2021-02-16 |publisher=U.S. DEPARTMENT OF DEFENSE |language=en-US}}</ref> A few months after this audit, David Norquist—the man who, as the Pentagon's comptroller, oversaw the entire audit process—got promoted to Acting Deputy Secretary of Defense.<ref>{{Cite web|last=Mehta|first=Aaron|date=2019-01-02|title=Pentagon comptroller to serve as acting deputy defense secretary|url=https://www.defensenews.com/pentagon/2019/01/02/pentagon-comptroller-to-serve-as-acting-deputy-secretary/|access-date=2021-02-16 |work=[[Defense News]] |language=en-US}}</ref> Norquist is a former partner of Kearney & Co., one of the firms that conducted the audit.<ref>{{Cite web|title=David L. Norquist|url=https://www.defense.gov/Our-Story/Biographies/Biography/Article/1289725/david-l-norquist/|access-date=2021-02-16|publisher=www.defense.gov|language=en-US}}</ref> In January 2019, the U.S. Air Force contracted Diligent Consulting (San Antonio, TX) to realign "the fielding strategy to match the needs of individual units" and "incorporate two financial processes necessary to be compliant with Financial Improvement and Audit Readiness and the Federal Information System Controls Audit Manual."<ref>{{Cite web|title=Contracts for January 29, 2019|url=https://www.defense.gov/Newsroom/Contracts/Contract/Article/1743253//|access-date=2021-02-16|publisher=U.S. DEPARTMENT OF DEFENSE|language=en-US}}</ref> The DOD failed its second audit, though DOD officials insisted "progress" was being made.<ref>{{Cite web|last1=Mehta |first1=Aaron |author2=Jen Judson|date=2019-11-17|title=The Pentagon completed its second audit. What did it find?|url=https://www.defensenews.com/pentagon/2019/11/16/the-pentagon-completed-its-second-audit-what-did-it-find/|access-date=2021-02-16 |work=[[Defense News]] |language=en-US}}</ref> The DOD failed its third audit, with DOD officials urging patience, asserting that DOD will likely pass its audit sometime around the year 2027.<ref>{{Cite web|last=Mehta|first=Aaron|date=2020-11-16|title=The Pentagon failed its audit again, but sees progress|url=https://www.defensenews.com/pentagon/2020/11/16/the-pentagon-failed-its-audit-again-but-sees-progress/|access-date=2021-02-16 |work=[[Defense News]] |language=en-US}}</ref> As of fiscal year 2022, the DOD has still not passed its audit. ==Locations== *Current locations: Major Sites *[[Indianapolis]], Indiana (Headquarters) – DFAS is headquartered in the MG Emmett J. Bean Federal Center, a {{convert|1600000|sqft|m2|adj=on}} building<ref>{{cite web|url=http://ehandbook.gsa.gov/bean/main.cfm?sid=binformation&pid=bhistory |title=Major General Emmett J. Bean Finance Center – Building History |publisher=U.S. General Services Administration |access-date=April 27, 2011 |url-status=dead |archive-url=https://web.archive.org/web/20110428130947/http://ehandbook.gsa.gov/bean/main.cfm?sid=binformation&pid=bhistory |archive-date=April 28, 2011 |df=mdy }}</ref> that was part of [[Fort Benjamin Harrison]].<ref>{{cite web |url=http://www.gsa.gov/portal/content/102206 |title=Major General Emmett J. Bean Federal Center |publisher=U.S. General Services Administration |access-date=April 27, 2011}}</ref> A solar panel system was installed on the roof of the building in 2010, allowing the building to generate 1.8-MW.<ref>{{cite web |url=http://electricalline.com/node/1209?page=54 |title=SunPower Solar Technology Selected for Multiple U.S. Federal Government Facilities |publisher=Electrical Line Magazine |access-date=April 27, 2011}}</ref> Prior to housing DFAS, this location was known as the Finance Center, U.S. Army (1953–1972); U.S. Army Finance Support Agency (1972–1974); U.S. Army Finance and Accounting Center (1975–1991).<ref>Carnes, W.H. Jr. (1994). U.S. Army Finance Center. In ''The Encyclopedia of Indianapolis'' (p. 1369). Indiana University Press. </ref> *[[Cleveland]], Ohio *[[Columbus, Ohio]] *[[Limestone, Maine]] *[[Rome, New York]] Europe Japan Smaller scaled back sites *[[Alexandria, Virginia]] *[[Texarkana, Texas]] *[[Bratenahl, Ohio]] *Closed sites: [[Patuxent River, Maryland]] [[Charleston, South Carolina]] [[Dayton, Ohio]] [[Denver]], Colorado - [[Lowry Air Force Base]] [[Kansas City, Missouri]] - [[Richards-Gebaur Air Force Base]] [[Lawton, Oklahoma]] [[Lexington, Kentucky]] [[Norfolk, Virginia]] [[Omaha, Nebraska]] [[Oakland, California]] [[Orlando, Florida]] - [[Naval Training Center Orlando]] [[Honolulu, Hawaii]] *Pacific [[Pensacola, Florida]] [[Rock Island, Illinois]] [[St. Louis, Missouri]] [[San Antonio]], Texas [[San Bernardino, California]] - [[Norton Air Force Base]] [[San Diego, California]] [[Seaside, California]] ==See also== * [[Air Reserve Personnel Center]], Denver, CO, former Lowry AFB ==References== {{Reflist|30em}} ==Further reading== * {{citation |title=Faking It: Behind the Pentagon's Doctored Ledgers, a Running Tally of Epic Waste |author=Scot J. Paltrow |author-link=Scot J. Paltrow |date= November 18, 2013 |url=https://www.reuters.com/investigates/pentagon/#article/part2 |publisher=Reuters |work=Unaccountable: the High Cost of the Pentagon's Bad Bookkeeping |number=2 }} — The "second installment in a series in which Reuters delves into the Defense Department’s inability to account for itself." Reports on the U.S. Defense Finance and Accounting Service and other agencies. * Keating, E.G., Gates, S.M., Pace, J.E., Paul C., and Alles, M.G.. (2001). [https://www.rand.org/pubs/monograph_reports/MR1261.html Improving the Defense Finance and Accounting Service's Interactions With Its Customers]. Santa Monica, CA: RAND Corporation. * United States. General Accounting Office. (May 28, 1998). [http://www.gao.gov/products/AIMD-98-133 Financial Management: Profile of Defense Finance and Accounting Service Financial Managers]. Retrieved April 3, 2017. * United States. Government Accountability Office. (June 23, 2014). [https://www.gao.gov/products/GAO-14-10 DOD Financial Management: The Defense Finance and Accounting Service Needs to Fully Implement Financial Improvements for Contract Pay]. Retrieved April 3, 2017. * Under Secretary of Defense (Comptroller): [http://comptroller.defense.gov/Financial-Management/Reports/ Financial Management Reports]. (n.d.). Retrieved April 3, 2017. * McConnell, D. and Wang, R. (May 12, 2014). ''[https://wiki.harvard.edu/confluence/download/attachments/204380235/MCCONNELL%20-%20Briefing%20Paper%20No.%2048.pdf?api=v2 The Chief Financial Officers Act of 1990 and Financial Management at Department of Defense].'' Briefing paper number 48. Harvard Law School: Briefing Papers on Federal Budget Policy. Retrieved April 12, 2017. * Defense Finance and Accounting Service. (2016). [https://www.dfas.mil/pressroom/aboutdfas.html 2016 DFAS Annual Financial Report]. Retrieved on April 11, 2017. * Department of Defense. (2012, April 20). [https://web.archive.org/web/20070714030029/http://www.dtic.mil/whs/directives/corres/pdf/511803p.pdf DoDD 5118.03, Under Secretary of Defense (Comptroller)/Chief Financial Officer, Department of Defense (USD(C)/CFO)]. Accessed on April 12, 2017. * Department of Defense. (2012, April 20). [https://web.archive.org/web/20070714020730/http://www.dtic.mil/whs/directives/corres/pdf/511805p.pdf DoDD 5118.05, Defense Finance and Accounting Service (DFAS)]. Accessed on April 11, 2017. ==External links== * {{Official website|https://www.dfas.mil/|name=DFAS Official website}} * [https://web.archive.org/web/20170413153219/https://dap.dau.mil/policy/Lists/Policy%20Documents/Organizations%20Defense%20Finance%20Accounting%20Service.aspx?tag=Defense%20Finance%20Accounting%20Service&group=Organizations Defense Acquisition Portal] {{DOD agencies}} {{Authority control}} {{DEFAULTSORT:Defense Finance And Accounting Service}} [[Category:United States Department of Defense agencies|Finance and Accounting Service]] [[Category:Government agencies established in 1991]] [[Category:Arlington County, Virginia]] [[Category:Organizations based in Indianapolis]] [[Category:Economy of Columbus, Ohio]] [[Category:Economy of Cleveland]] [[Category:Military units and formations in Colorado]] [[Category:1991 establishments in the United States]]
